ISLAMABAD: Prime Minister Shehbaz Sharif has directed the government to reduce the income tax burden on salaried individuals, according to Minister of State for Revenue, Ali Pervez Malik. Speaking to the media on Thursday, Malik explained that the move is part of broader efforts to ease financial pressures on the middle class while improving the country’s overall economic conditions.
Malik also noted that inflation in Pakistan has significantly decreased, dropping from over 35 percent to around 7 percent in recent months, providing relief to consumers. Despite the drop in inflation, he pointed out that the federal government had imposed taxes worth Rs. 3,500 billion, but stressed that combating tax evasion remains critical to strengthening the country’s revenue base.
The minister acknowledged that the government has made some difficult, unpopular decisions in recent months, but emphasized that these actions have put Pakistan on the right economic path. He also mentioned that the current account deficit, which had once ballooned to $18 billion, has now been brought under control.
Malik emphasized that increasing revenue collection is crucial for the country’s financial recovery. He further reassured that the government is working to ensure that the current International Monetary Fund (IMF) program would be the last one, with plans to strengthen Pakistan’s economic independence.
Additionally, the minister announced that the government has approved measures to enhance the enforcement capabilities of the Federal Board of Revenue (FBR), including increasing its resources to curb tax evasion and improve compliance. These steps are part of the government’s broader strategy to stabilize Pakistan’s economy and reduce its reliance on external financial assistance.
